MEMORANDUM OF SETTLEMENT BETWEEN UNILEVER PAKISTAN FOODS LTD AND THE SHAHEEN WORKERS UNION – UNILEVER PAKISTAN FOODS LTD - 2014

New3

UNDER INDUSTRIAL RELATIONS ACT, 2012

EFFECTIVE FROM 1ST APRIL, 2014 TO 31ST MARCH, 2016

REPRESENTING MANAGEMENT

Shafaq Omer – HR Director

Amar Naseer – Legal Directory & Company Secretary

Syed Imran Ali – Works Manager

Faizaan Ahmed – ER Head

Saba Irshad – Commercial Manager

Moazzam Munir – Operation Manager

Tayyab Siraj – Factory HRM

Ali Vadiya – Finance Business Partner

Rukhshanda Saif Durrani – AM-ER

REPRESENTING WORKER

Malik Muhammad Aslam – President

Ghulam Rasool – General Secretary

Mushtaq Sikandar – Vice President

Mudasser Rasool – Office Secretary

Nasir Javed – Joint Committee Member

Imran Ali Babar – Joint Secretary

SHORT RECITAL OF THE CASE

The Shaheen Workers Union – Unilever Pakistan Foods Ltd. Kasur (Regd.), the Collective Bargaining Agent (hereinafter called ‘C.B.A’ of Unilever Pakistan Foods Ltd. submitted the Charter of Demands (Annexure A) vide their letter No. Nil dated April 15th, 2014 to Unilever Pakistan Foods Ltd. (Formerly Rafhan Best Foods Ltd.) (hereinafter called the ‘Company’).

A series of meetings were held between the representatives nominated by the C.B.A and the company for bilateral negotiations and collective bargaining. Finally, the following agreement has been arrived at in full and final settlement of the above Charter of Demand which shall remain binding on both the parties w.e.f. 1st April, 2014 to 31st March, 2016 for a period of two years.

1. ANNUAL INCREMENTS

In view of the rise in cost of living, the company agrees to pay to its permanent factory staff an increase in basic salary as under w.e.f. 1st April, 2014.

For permanent factory staff appointed on or before December 14th, 2011 Rs. 900/-

For permanent factory staff appointed on or after December 15th, 2011 Rs. 1590/-

The Company also agreed to pay to the Permanent Factory Staff a further increase in basic salary as under w.e.f. 1st April, 2015.

For Permanent Factory Staff appointed on or before December 14th, 2011 Rs. 900/-

For Permanent Factory Staff appointed on or after December 1th, 2011 Rs. 1590/-

2. SPECIAL ALLOWANCES

This has also been agreed that an Allowance will be given to the Factory Staff who were hired after December 15th, 2011 as “Special Allowance 2014”. The Allowance will be paid as follows;

From April 01, 2014 to March 31, 2015 @ Rs. 1680/- p.m.

From April 01, 2015 to March 31, 2016 allowance will be increased to Rs. 2880/- p.m.

From April 01, 2016 to March 31, 2017 allowance will be further increased to Rs. 4080/- p.m.

From April 01, 2017 to March 31, 2018 allowance will be increased to Rs. 5280/- p.m.

No further increase will be given after that. It is also decided that it will never be discussed again in any charter of demand meeting. This allowance will have direct or indirect on any other competent of wage for all intents and purposes.

3. PROMOTION

Promotions is a management prerogative, however, it is agreed that representatives of Management and C.B.A will sit to finalize a procedure and criteria for Promotions of Permanent Factory Staff.

4. ANNUAL BONUS

It is also agreed to pay 11 Bonuses under 10C to all permanent factory staff employed in the factory on date of execution of this settlement. The bonuses are agreed to be paid for the period 1st April, 2014 to 31st March, 2016. The net entitlement of bonus per worker is 11 agreemental bonuses and 1 bonus under section 10C per annum subject to profit earning of company and will be paid in addition to the 11 bonuses agreed.

The above bonuses will be payable to Permanent Factory Staff who are in the employment of the company on the date of signing of this settlement, however, the Permanent Factory Staffs who have joined company’s service on or after 1st April 2014 shall be entitled to these bonuses on pro-rata basis as detailed in their appointment letter.

BONUSES CALCULATIONS

11 Bonuses: Basic + Cola 205 + 18% indexation

1 Bonus under section 10C Bonus (Profit Based): Basic + Cola 205 + 18% indexation + Cola 93 + Cola 94 + Cola 97

5. HAJJ, NON-MUSLIMS RELIGIOUS ZIARAT

It is decided that for 2014 total number of 2 (two) Permanent Factory Staff will perform Hajj and for 2015 total number of 3 (three) Permanent Factory Staff will perform Hajj. Company will bear the Expense of their Medical and Passport if any. Management will also give Rs. 1,000/- Saudi Riyals as loan which will be returned from Annual Bonus.

They have to provide proof of such ziarats to the satisfaction of company. The person will be chosen through balloting and he will be entitled for 40 days leaves with pay. A person who has once been selected for this purpose through the company balloting process and has availed the facility shall not be eligible for the future balloting.

6. MONTHLY POD

It is decided that an amount of PKR 1,200/- in lieu of POD will be added as special “POD Allowance” and existing POD system will be discontinued and demand for POD in kind will never be raised in future. The change will be implemented when supply of POD in kind is stopped and amount becomes payable which will be paid in monthly salary.

7. OVERTIME

It is decided that management will check the formula of Overtime and will implement the change.

8. ANNUAL LEAVES

It is decided that the number of Annual Leave will be increased to 25 calendar days.

9. COMPUTER ALLOWANCE

It is decided that Computer Allowance will be Rs. 500/- and eligibility will remain same as of previous charter/practice i.e. spending at leave 75% of their time on the computer.

10. EDUCATION SCHOLARSHIP

The company agrees to grant 15 scholarships to the children of Permanent Factory Staff of the company which will be allowed as per following amount.

a) Matric Rs. 500/- per month plus Rs. 300/- on securing 60% or more marks.

b) Intermediate Rs. 550/- per month plus Rs. 300/- on securing 60% or more marks.

c) Graduation Rs. 600/- per month plus Rs. 300/- on securing 60% or more marks.

d) Post Graduate Rs. 650/- per month plus Rs. 300/- on securing 60% or more marks.

11. PROVIDENT FUND STATEMENT

Provident Fund annual statement will be provided to Permanent Factory Staff after audit of Provident Fund Accounts.

12. RECREATION / PASSAGE ALLOWANCE

It is agreed that Passage Allowance for Permanent Factory Staff will be paid an allowance which will be inclusive of (basic salary, COLAS and 18% indexation) x 1.07. However, it will be admissible up to 10 (ten) absences during the year.

13. BREAKFAST

It has been agreed that breakfast will be provided to:

i) Shift “A” at arrival (6:00 a.m.)

ii) Shift “C” at departure (6:00 a.m.) only for declared chronic diseases Permanent Factory Staffs on recommendation of Company doctor.

14. REFRESHMENTS

It is decided that a 1 (one) ticki pack will be added with the tea in “B” shift and 1 (one) half roll biscuit for “C” shift.

15. NIGHT / EVENING ALLOWANCE

It has been agreed to pay an evening shift allowance of Rs. 35/- and night shift allowance Rs. 67/- per shift.

16. WHEAT ADVANCE

It has been agreed that Government applicable price will be final for advancing loan to Permanent Factory Staff, for buying 25 mounts of wheat. This amount will be deducted from Permanent Factory Staff’s salary every month in 12 equal installments without any interest.

17. COMPANY LOAN FUND

It has been agreed that the company will provide total company loan fund of Rs. 150,000/- (Rupees one hundred fifty thousand only). To be eligible for such loan, the individual must be a permanent factory staff of the company for 3 years. The loan will be paid back to the company in thirty equal installments with 9% interest.

18. HOUSE BUILDING/MOTORCYCLE/COMPUTER LOAN

It is agreed that total amount of Rs. 2,500,000/- will be available for permanent factory staff as House Building Loan with maximum loan of Rs. 80,000/- per permanent factory staff without any interest. The loan will be returned in sixty equal installments (50% deduction from salary + 50% from bonus). To be eligible for such a loan, the individual must be a permanent factory staff of the company for 03 years and the registry of the property must be valid. The above facility will also be available for purchase of motorcycle & computer, however, an employee can exercise this option only once for house building, motorcycle or computer.

19. COLAS

No change in existing practices. Follow law of the land.

20. TOP GRADE WORKERS

Company will encourage the Permanent Factory Staff to apply for management positions through company’s Open Job Positing and follow the company’s recruitment process.

21. LONG SERVICE AWARD

The Management agrees to give the following Service Award to Permanent Factory Staff on completion of their respective service periods:

Service Period Award
10 Years Rs. 7,000/-
15 Years Rs. 14,000/-
20 Years Rs. 16,000/-
25 Years Rs. 18,000/-

22. CONVEYANCE

It has been agreed that the company will provide conveyance to Permanent Factory Staff travelling from Lahore during the regular shift. It is expected that not more than 13 Factory Staffs will avail this facility. In case the number increase, C.B.A will inform the company accordingly well in advance in order that the appropriate conveyance can be arranged. It has been further agreed that factory management and C.B.A wills it together and optimize the route for existing transport facility to accommodate patoki as well in the existing route throughout the shifts. It will be insured that the cost remains within the budgeted amount. It is also decided that amount of conveyance allowance is to be PKR. 500/-.

23. SPORTS FOR FITNESS

Sports Facility will be provided as agreed in the last agreement dated 23rd June, 2011.

24. BURIAL EXPENSES

It has been agreed that the company will pay Rs. 35,000/- (Rupees Thirty-five thousand only) as funeral expenses on the death of a Permanent Factory Staff to the widow of Permanent Factory Staff and if the widow is not surviving to the legal eldest child of Permanent Factory Staff.

25. PICNIC

One Picnic for the year will be held for Permanent Factory Staff with mutual understanding of C.B.A.

26. MARRIAGE ALLOWANCE

It has been agreed to pay to Factory Staff an amount of Rs. 12,000/- (Rupees Twelve thousand only) on marriage as ex-gratia for marriage of self, daughter and dependent sister. A Factory Staff can have maximum of 02 cases per annum. In total, there can only be a maximum of 08 such double cases in a calendar year. It has also been agreed that claims will be disposed-off on monthly basis. In case a Factory Staff is left out of the double case during the calendar year due to the completion of double cases, the individual will have the right to apply out of the quota of the next year. To be eligible for this allowance the individual must be a Permanent Factory Staff of the company for 02 years. In all 17 single cases or 8 double cases and one Single case will be entertained in each calendar year.

27. MEDICAL FACILITY

It has been agreed that medical facility will be continued as per previous practice for those three Permanent Factory Staffs who are not covered under social security scheme.

These Permanent Factory Staff will be paid allowance of 07% basic salary + COLAS + 18% indexation + House Rent + Conveyance allowance + Special allowance (Rs. 450/-). The 07% medical allowance will also be admissible at the close of the year at the actual earning of night and evening shift allowances.

*****

Memorandum of Settlement between Unilever Pakistan Foods Ltd and The Shaheen Workers Union – Unilever Pakistan Foods Ltd - 2014

Start date: → 2014-04-01
End date: → 2016-03-31
Ratified by: → Other
Ratified on: → 2014-04-15
Name industry: → Manufacturing
Name industry: → Manufacture of beverages, Manufacture of food products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Unilever Pakistan Limited
Names trade unions: →  Unilever Employees’ Federation of Pakistan

WORK AND FAMILY ARRANGEMENTS

Job security after maternity leave: → 
Prohibition of discrimination related to maternity: → 
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → Yes

WORKING HOURS, SCHEDULES AND HOLIDAYS

Paid annual leave: → 25.0 days
Paid annual leave: →  weeks
Provisions on flexible work arrangements: → No

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 75.0
Wage increase starts: → 2011-12

Once only extra payment

Once only extra payment due to company performance: → Yes

Premium for evening or night work

Premium for evening or night work: → PKR 2010.0 per month
Premium for night work only: → Yes

Premium for overtime work

Allowance for commuting work

Allowance for commuting work: → PKR 500.0 per month

Allowance for seniority

Allowance for seniority: → PKR 7000.0 per month
Allowance for seniority after: → 10 years of service

Meal vouchers

Meal vouchers provided: → Yes
Meal allowances provided: → No
Free legal assistance: → No
Loading...